Latest Insights in Stock Market Investing
Converting a High Risk to a Low Risk Covered Call Trade
click ↑ 4 Featured High implied volatility securities can be used in covered call trades in a defensive manner using the appropriate call strikes. In this article, Neurocrine Biosciences, Inc. (Nasdaq: NBIX) will be used to analyze the conversion process. NBIX data on...
BCI PODCAST 141: The Stock Repair Strategy
Do you own a stock losing a significant amount of money? The stock repair strategy uses stock options to lower our breakeven price point without adding significant cash to an already losing trade. Learn the pros & cons of the strategy with a real-life example with...
Rolling-Up Twice and Closing a Mixed Cash-Secured Put Trade
click ↑ 4 Featured Exit strategies for covered call writing and selling cash-secured puts are critical in achieving the highest level of our trading returns. In this article, a real-life example with SPDR S&P Homebuilders ETF (NYSE: XHB) will analyze a...
Ask Alan # 226: Hitting a Double and Selling the Stock Using the Trade Management Calculator
---------- This video analyzes a series of covered call trades where 2 income streams were generated using exit strategy management. The stock lost money of the 26-day series of trades, but the investor made 1.85% in that time frame. Calculations and trade entries are...
2 Important Dates When Trading Stock Options
click ↑ 4 Featured When we sell covered call or cash-secured put options, there are 2 dates we should factor into our trade decisions. Earnings reports (ER) dates must be considered 100% of the time and ex-dividend dates are important in certain specific scenarios. In...
The Mystery of Our Brokerage Accounts: Where Did My Option Premium Money Go?
click ↑ 4 Featured We sell a covered call or cash-secured put and the cash is immediately placed into our broker cash account. Next, we check our account value, and it did not go up! In some cases, it went down! Where did the option premium money go? This article will...
“Hitting a Put Triple”: Put-Selling Exit Strategies – BCI Podcast 140
Is it true that selling a cash-secured put will result in only 1 income stream ... the put premium? This podcast will demonstrate that this is not necessarily the case. A series of real-life put trades resulted in 3 income streams in the same contract cycle. Links...
Shorter Dated Options Deliver Higher Annualized Returns: The Square Root Rule
click ↑ 4 Featured When selling covered calls or cash-secured puts, using contract expirations several months out (or longer) have the appeal of large option premiums. However, when we annualize these returns, they pale in comparison to the returns generated by...
Portfolio Overwriting NVDA Using Implied Volatility
click ↑ 4 Featured When NVIDIA Corp. (Nasdaq: NVDA) split 10-for-1 in June 2024, more retail investors had the opportunity to leverage this stock to sell options. Many already owned NVDA, but now owned 10x the number of shares at 1/10 the price. Writing covered calls...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
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The Blue Collar Investor was founded with a simple mission: to empower everyday individuals with the knowledge to invest wisely in the stock market. Our blog focuses on demystifying stock options, providing readers with the tools they need to succeed. We believe that anyone can learn to invest effectively, regardless of their background or experience.
Our story began when our founder Dr. Alan Ellman, realized the lack of accessible resources for average investors. Determined to bridge this gap, we created a platform that offers comprehensive guides, expert tips, and real-world strategies. Today, The Blue Collar Investor is a trusted resource for thousands of readers seeking to enhance their financial literacy and achieve their investment goals.